On Labor Day, the Data Shows the Struggles of Our Country’s Small Businesses and Workers
Today we celebrate the hardworking men and women of this country. Their efforts and labors are the foundation of the American Dream. The failed policies of the Biden Administration, however, continue to undermine their contributions. Americans feel economic pain every time they fill their gas tanks or shop for groceries. Historically high prices have forced American families to tighten their financial belts and make tough choices about what they can afford.
Their hard-earned dollars do not go as far as they used to. Under the Biden administration’s policies, inflation has caused the average American worker to lose $1,800 in purchasing power, rising to $3,600 for dual-earner families.
The American worker and the American entrepreneur are inextricably tied together. Ninety-nine percent of the country’s businesses are small businesses, employing approximately half of all American workers. The policies that affect our small businesses directly affect the American worker.
It is easy for this White House to give lip service to these businesses and their employees, but digging into the data presents the real story of their concerns that are simply not being addressed. Recent studies have shown that small business owners are very concerned about where this economy is going, and their legitimate anxieties seem to be exacerbated by almost every move the Biden administration makes. Let us begin with real-time data.
Research from Alignable shows that 40% of small businesses could not pay their rent in August, and the most affected sectors are agriculture, automotive, restaurants, and education. And when you ask these small businesses if they think things will improve, research from CNBC Small Business Index demonstrates that 77% will tell you that they expect inflation to get worse, while 57% believe we are already in a recession.
These adverse economic conditions, coupled with the ongoing concerns regarding the stagnant supply chain, continue to fuel these headwinds for our country’s entrepreneurs, 63% of whom do not expect an increase in their revenues over the next year. Many anticipate needing to cut staff, leading to another challenge for the American worker.
Even with these incredibly difficult economic conditions, the Biden Administration is still using the heavy hand of government to slow innovation and dampen the drive of our entrepreneurs. The CNBC report also states that 58% of small businesses believe that the current government regulations will hurt their companies, attributing specific pains to tax, trade, technology, and immigration policies.
As a direct result of all these policies, 69% of small businesses expect to have no choice other than to raise U.S. consumer prices to keep afloat during this time of inflation, per the MetLife & U.S. Chamber of Commerce Small Business Index.
Earlier this month, President Joe Biden said, “[a] key driver of our economic recovery is the resurgence of American small business. Small businesses hire as many people as the — as the major corporations.” These words are simply not backed up by substantive actions changing our nation’s outlook.
If he really means what he is saying, President Biden should immediately adopt policies that embrace low inflation, limited regulations, increased labor training and opportunities, and a legal, fair immigration system. These policies were all cornerstones of President Donald J. Trump’s agenda that led to historic growth and opportunity across our small business and labor markets.
Today, as we celebrate our American workers, we should also consider how much more we could do to increase their prosperity and honor the American work ethic.
Linda McMahon is Chair of the Board at the America First Policy Institute (AFPI) and also serves as the Chair of AFPI’s Center for the American Worker. Previously she served in President Trump’s Cabinet as administrator of the Small Business Administration (SBA).
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.
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